Fixed Rate Mortgages Fall, But I Don’t Think They’re Here To Stay
So…
Here we are in February of 2023.
Mortgage rates and interest rates have increased dramatically over the last few months.
Gone is the 1% - 2% mortgage rate…
Will it come back?
Not for a LONG time… (In my opinion!)…
Liz Truss’s mini budget made mortgage rates increase dramatically back in September of 2022, and a couple of months later, the most affordable five-year fixed rate mortgage was over 5% - unthinkable a couple of years ago!
Now, as of February 2023, the cheapest five-year fixed mortgage rate is below 4%.
Do I think that it will remain this way…?
No, I don’t!
“Gone is the 1% - 2% mortgage rate…”
It doesn’t look good for those homeowners or homebuyers that are coming off a fixed-rate mortgage and going onto a variable mortgage rate, or those that are looking to buy.
The joke is, is that a 1% - 2% mortgage rate is NOT the norm…!
At all!
The norm, historically speaking, is around the 5% - 6% range, and I feel that this will be the case for the foreseeable future.
Having the normal mortgage at, say, 6% will take a lot of getting used to for people, but when things have settled more in a couple of years time, I feel that the 2% mortgage rate will be long forgotten about!
Please, whatever you do, speak to an independent mortgage adviser if you’re either changing to a variable rate mortgage rate or looking to buy!